Blancco Technology Group PLC Pre Close Trading Update (6748T)
July 22 2020 - 1:00AM
UK Regulatory
TIDMBLTG
RNS Number : 6748T
Blancco Technology Group PLC
22 July 2020
22 July 2020
Blancco Technology Group PLC
("Blancco" or the "Group")
Pre Close Trading Update
Structural tailwinds support continued financial progress
Blancco Technology Group (AIM: BLTG), the industry standard in
data erasure and mobile device diagnostics, provides the following
trading update for the financial year ended 30 June 2020 ("FY
2020").
Blancco has continued to benefit from strong structural
tailwinds which have supported continued revenue and profit growth
in FY 2020. Although the COVID-19 pandemic lengthened sales cycles
in the second half of FY 2020, the Board expect results for FY 2020
to be in line with current market expectations with revenue of
approximately GBP33.4m (FY19: GBP30.5m) and Adjusted* Operating
Profit of approximately GBP4.0m (FY19: GBP3.5m). As anticipated at
the time of the Group's interim results in February 2020, cash
generation has continued to improve in the second half of FY 2020
and the Group ended the year with GBP6.7m of net cash (30 June
2019: GBP0.1m).
The Group has continued to make strong progress in further
developing its relationships with channel partners to drive growth
in the Enterprise market. In December 2019, Blancco was awarded
Advanced Technology Partner status with Amazon Web Services (AWS)
Partner Network (APN). In June 2020, the Group's services were
included on the AWS marketplace platform which has significantly
increased the visibility of Blancco's data sanitisation
technologies to AWS customers.
The Mobile segment continues to progress well, and the Master
Services Agreement with an Aon Group Company that we announced in
June 2020, is progressing in line with management's expectations.
Overall, awareness and traction of Blancco's diagnostic solution in
the provision of mobile phone insurance continues to increase.
The Group expects to announce its financial results for the year
ended 30 June 2020 on Tuesday, 29 September 2020. A briefing for
analysts will be held at 3.00pm on Tuesday, 29 September via
conference call. Please contact Buchanan at blancco@buchanan.uk.com
to register.
*Adjusted Operating Profit excludes expenses relating to share
option schemes, exceptional costs and incomes and the amortisation
of acquired intangible assets
Matt Jones, Chief Executive Officer of Blancco, commented:
"Despite the challenges presented by the COVID-19 pandemic,
Blancco has continued to deliver on its stated growth strategy. In
the short term, the challenges created by the pandemic of
lengthened sales cycles are expected to temper growth in the early
months of this new financial year. However, our pipeline is
strengthening and the widespread implementation of remote working
has led to a noticeable increase in the purchase of IT equipment
which is likely to lead to increased demand for our services in the
medium term. In addition, the growing focus on the environmental
footprint of IT assets has increased the attention given to their
lifecycles by enterprises and highlighted the need for
comprehensive ongoing data management. Although the impact of
COVID-19 has clearly introduced some uncertainty, we are confident
that we are well placed to create further value with both a strong
balance sheet and a product suite that addresses the regulatory and
environmental challenges that are facing all organisations at the
present time. "
ENDS
For further information:
Blancco Technology Group plc via Buchanan
Matt Jones, Chief Executive Officer
Adam Moloney, Chief Financial Officer
Peel Hunt (Nominated Advisor & Joint
Broker)
Edward Knight / Nick Prowting / Edward
Allsopp +44 (0) 20 7418 8900
Investec Bank plc (Joint Broker)
Patrick Robb / Sara Hale / Virginia
Bull +44 (0) 20 7597 5970
Buchanan Communications Limited
Chris Lane / Stephanie Watson / Charlotte
Slater
blancco@buchanan.uk.com +44 (0) 20 7466 5000
About Blancco
Blancco Technology Group plc is a leading global provider of
mobile device diagnostics and secure data erasure solutions. For
more information, please visit www.blanccotechnologygroup.com .
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END
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